A second round of on-chain US Treasury financing has been successfully completed by Digital Asset and a consortium of financial institutions on the Canton Network, enabling real-time collateral reuse and increasing the variety of stablecoins involved.
The latest phase included five transactions, building on the July pilot, which first demonstrated the potential to combine US Treasurys with the USDC stablecoin for financing and settling transactions on the blockchain.
During this trial, multiple stablecoins were utilized to finance positions against tokenized US Treasurys, enhancing the on-chain liquidity available for financing operations.
The trial illustrated that tokenized US Treasurys could be transferred between parties and reused as collateral in real-time, bypassing the operational delays typically associated with rehypothecation in conventional finance.
This initiative involved Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global, all part of the Canton Network’s Industry Working Group.
Kelly Mathieson, chief business development officer at Digital Asset — the company responsible for the Canton Network — stated that the test represented “a thoughtful progression toward a new market model.”
Justin Peterson, chief technology officer of Tradeweb, remarked that “demonstrating real-time collateral reuse and increased stablecoin liquidity isn’t merely a technical achievement — it serves as a blueprint for the future of institutional finance.”
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Canton Network expands its presence in tokenized RWAs
The Canton Network, a layer-1 blockchain designed for institutional finance, has been enhancing its presence in the tokenization sector throughout this year.
On December 4, its developer, Digital Asset, secured approximately $50 million in strategic investment from BNY, iCapital, Nasdaq, and S&P Global. This funding follows a $135 million raise earlier this year and aims to support the network’s scaling initiatives.
In October, asset manager Franklin Templeton announced its plan to migrate its Benji Investments platform — which tokenizes shares of the firm’s leading US money market fund — to the Canton Network.
Data from RWA.xyz also indicates that the Canton Network now dominates the tokenized real-world asset market with over $370 billion represented on-chain, significantly surpassing other popular networks like Ethereum, Polygon, and Solana.
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